Greystone Provides HUD-Insured Construction Financing as part of $78 Million Affordable Housing Development Project for Seniors in Miami Beach, Florida
NEW YORK, Aug 31, 2020 (GLOBE NEWSWIRE) – Greystone, a leading national commercial real estate finance company, has received a $ 30 million home loan for council redevelopment under the HUD 221 (d) (4) program US $ 78 million provided to Towers Senior Apartment Homes, an age-restricted, affordable residential community in Miami Beach, FL. The transaction was initiated by Jon Morales, Senior Vice President at Greystone, on behalf of the EHDOC Council Towers Limited Partnership.
Council Towers consists of two 12-story buildings on Collins Avenue (5th and 10th Streets) in Miami Beach with a total of 250 one-bedroom units that are subsidized by HUD under a Section 8 project-based contract. The major redevelopment of the property, originally built 40 years ago under HUD’s Section 202 program, will improve, preserve, and continue to provide high quality, affordable housing for low-income seniors (below 60% AMI) over 62 years of age.
Funding sources for this transformative project include Greystone’s $ 30M HUD-insured 221 (d) 4 loan, as well as the low-income tax credit, seller note and reserve transfer. The HUD insured no recourse loan has a term of 40 years at a fixed, low interest rate.
“Maintaining and providing high quality, affordable Miami Beach senior housing is a priority, and orchestrating a Section 202 redevelopment into a stunning community with unparalleled ocean views will provide a much-needed respite for our residents,” said Steve Protulis, President and CEO of Elderly Housing Development and Operations Corporation (EHDOC). “We are grateful to all of our partners who made this transaction possible, including Stratford Capital for the critical tax credit. We hope that the 4% LIHTC program continues to be a viable platform for the preservation and creation of affordable housing. “
The redevelopment team is led by Roland J. Broussard, Vice President Development at EHDOC, and Jason B. Duguay, Vice President Development at Stratford Capital Group (SCG), along with Larry Hecky, Chief Architect, Hecky Group Tom Morrissey, President T. Morrissey Construction. The planned schedule for renovating the tenants on site is expected to be up to 20 months. In addition to the renovation of the exterior facade and the common area, new kitchens with energy efficient appliances, new bathrooms, decorative lighting, new floors, new windows and sliders, new roof, complete modernizations of the elevator and paint will be installed in the individual units and complete update for the existing 250 houses .
“In all fairness, transformations like this are hard to come by, but working with a team like Stratford Capital and Greystone who have expertise in affordable housing, tax credits and HUD-backed finance provided an opportunity to create a community that really does deserves to offer incredible residences, ”added Mr Broussard.
“Working with sponsors like EHDOC is a great pleasure because their mission to deliver affordable housing drives them,” added Morales. “This transaction was very complex, but the end result will be a great treasure for the community and we are happy to have played a role in it. Greystone would also like to congratulate Melanie A. Ribeiro, Interim President / CEO of EHDOC, who will take on her new role in September 2020. We look forward to working with her and her team on future opportunities for affordable housing. “
Greystone is a privately held national commercial real estate finance company with an established reputation as a leader in multi-family and healthcare finance, ranked as a top lender in these sectors to FHA, Fannie Mae and Freddie Mac. Our range of services includes commercial loans on a variety of platforms such as Fannie Mae, Freddie Mac, CMBS, FHA, USDA, Bridge, and proprietary loan products. Loans are offered through Greystone Servicing Company LLC, Greystone Funding Company LLC, and / or other Greystone affiliates. Please visit www.greystone.com for more information.